Analysts See More Outflows for Pimco

via Wall Street Journal

Investors pulled money from Pacific Investment Management Co.’s flagship Pimco Total Return Fund in January, and analysts say the outflows could continue for a few more months following last year’s upheaval at the Newport Beach, Calif., firm.

Total Return (PTTAX) suffered a jolt when Pimco co-founder Bill Gross , the fund’s manager, left in September to join Janus Capital Group . The fund had $102.9 billion in net outflows in 2014, with some $78 billion coming in the last four months of the year, according to Morningstar Inc. In January, investors pulled an additional $11.6 billion from the fund, leaving it with assets of $134.6 billion at month’s end.

Pimco’s chief executive officer, Douglas Hodge.
Pimco’s chief executive officer, Douglas Hodge. Photo: Bloomberg News

Sarah Bush, a Morningstar analyst, predicts the fund will continue shrinking through the first half of 2015. She believes that some institutional investors didn’t pull out of Total Return right away because they wanted to take some time to research comparable funds…

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